Govt invites bids for Nalco sale

Government has invited initial bids for sale of 29.15 per cent stake to a strategic partner along with management control in Nalco. According to sources, prospective bidders are required to submit EoI by September 16. Though the Government has not specified any turnover criteria for bidders, interested parties must have a net worth of $250 million.

Government has mandated ABN AMRO-Rothschild-ENAM Consultants to act as global advisors for the deal while J P Morgan-ICICI Securities have been appointed as co-book runners. Government currently holds 87.15 per cent stake in the aluminium major and it intends to bring this down to 26 per cent after offloading 60 per cent equity in three phases. Around 20 per cent would be offloaded through ADR and 10 per cent would be divested through domestic offering.